LINAMAR CORP (LNR.CA) Stock Fundamental Analysis
Canada - TSX:LNR - CA53278L1076 - Common Stock
78.95 CAD
-0.57 (-0.72%)
Taking everything into account, LNR scores 5 out of 10 in our fundamental rating. LNR was compared to 4 industry peers in the Automobile Components industry. LNR has an average financial health and profitability rating. LNR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year LNR was profitable.
In the past year LNR had a positive cash flow from operations.
LNR had positive earnings in each of the past 5 years.
Each year in the past 5 years LNR had a positive operating cash flow.
1.2 Ratios
LNR has a Return On Assets (1.95%) which is in line with its industry peers.
LNR has a Return On Equity (3.62%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.15%, LNR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LNR had an Average Return On Invested Capital over the past 3 years of 6.55%. This is in line with the industry average of 6.65%.
The 3 year average ROIC (6.55%) for LNR is below the current ROIC(7.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROIC | 7.15% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
1.3 Margins
LNR has a Profit Margin (2.06%) which is in line with its industry peers.
LNR's Profit Margin has declined in the last couple of years.
LNR's Operating Margin of 9.01% is amongst the best of the industry. LNR outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of LNR has remained more or less at the same level.
LNR has a better Gross Margin (14.59%) than 75.00% of its industry peers.
LNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% |
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LNR is destroying value.
Compared to 1 year ago, LNR has less shares outstanding
The number of shares outstanding for LNR has been reduced compared to 5 years ago.
The debt/assets ratio for LNR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.74 indicates that LNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
LNR has a Altman-Z score of 2.74. This is in the better half of the industry: LNR outperforms 75.00% of its industry peers.
LNR has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as LNR would need 2.41 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.41, LNR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that LNR is not too dependend on debt financing.
LNR has a Debt to Equity ratio of 0.33. This is in the better half of the industry: LNR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.98
WACC7.3%
2.3 Liquidity
LNR has a Current Ratio of 1.80. This is a normal value and indicates that LNR is financially healthy and should not expect problems in meeting its short term obligations.
LNR has a better Current ratio (1.80) than 75.00% of its industry peers.
A Quick Ratio of 1.04 indicates that LNR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, LNR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
LNR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.02%.
Measured over the past 5 years, LNR shows a small growth in Earnings Per Share. The EPS has been growing by 6.61% on average per year.
Looking at the last year, LNR shows a decrease in Revenue. The Revenue has decreased by -2.60% in the last year.
LNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
3.2 Future
The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.01% on average over the next years.
EPS Next Y3.88%
EPS Next 2Y6.2%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue Next Year-4.31%
Revenue Next 2Y1.3%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.11, which indicates a very decent valuation of LNR.
100.00% of the companies in the same industry are more expensive than LNR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. LNR is valued rather cheaply when compared to this.
LNR is valuated cheaply with a Price/Forward Earnings ratio of 7.13.
LNR's Price/Forward Earnings is on the same level as the industry average.
LNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.13 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than LNR, based on the Enterprise Value to EBITDA ratio.
75.00% of the companies in the same industry are more expensive than LNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 3.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LNR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LNR may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)1.23
EPS Next 2Y6.2%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
LNR has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
LNR's Dividend Yield is slightly below the industry average, which is at 3.43.
LNR's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
5.2 History
On average, the dividend of LNR grows each year by 15.99%, which is quite nice.
LNR has been paying a dividend for at least 10 years, so it has a reliable track record.
LNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.99%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
LNR pays out 30.00% of its income as dividend. This is a sustainable payout ratio.
The dividend of LNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30%
EPS Next 2Y6.2%
EPS Next 3Y10.73%
TSX:LNR (11/14/2025, 7:00:00 PM)
78.95
-0.57 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners17.55%
Inst Owner ChangeN/A
Ins Owners35.48%
Ins Owner ChangeN/A
Market Cap4.72B
Revenue(TTM)10.19B
Net Income(TTM)210.25M
Analysts78
Price Target81.94 (3.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend1
Dividend Growth(5Y)15.99%
DP30%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.6%
Min EPS beat(2)1.02%
Max EPS beat(2)12.18%
EPS beat(4)3
Avg EPS beat(4)6.78%
Min EPS beat(4)-0.57%
Max EPS beat(4)14.48%
EPS beat(8)7
Avg EPS beat(8)8.99%
EPS beat(12)10
Avg EPS beat(12)8.3%
EPS beat(16)13
Avg EPS beat(16)10.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)-2.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)-1.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)7
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.73%
PT rev (1m)0.63%
PT rev (3m)21.72%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0.28%
EPS NY rev (3m)6.06%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.13 | ||
| P/S | 0.46 | ||
| P/FCF | 5.15 | ||
| P/OCF | 3.53 | ||
| P/B | 0.81 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 3.87 |
EPS(TTM)9.74
EY12.34%
EPS(NY)11.08
Fwd EY14.03%
FCF(TTM)15.32
FCFY19.41%
OCF(TTM)22.36
OCFY28.33%
SpS170.31
BVpS97.05
TBVpS64.37
PEG (NY)2.09
PEG (5Y)1.23
Graham Number145.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.62% | ||
| ROCE | 11.38% | ||
| ROIC | 7.15% | ||
| ROICexc | 8.17% | ||
| ROICexgc | 11.29% | ||
| OM | 9.01% | ||
| PM (TTM) | 2.06% | ||
| GM | 14.59% | ||
| FCFM | 9% |
ROA(3y)4.18%
ROA(5y)4.38%
ROE(3y)7.69%
ROE(5y)7.72%
ROIC(3y)6.55%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)10.64%
ROICexgc(5y)10.8%
ROCE(3y)10.42%
ROCE(5y)9.96%
ROICexgc growth 3Y-1.07%
ROICexgc growth 5Y3.47%
ROICexc growth 3Y2.32%
ROICexc growth 5Y3.81%
OM growth 3Y-0.8%
OM growth 5Y0%
PM growth 3Y-27.61%
PM growth 5Y-15.91%
GM growth 3Y-0.31%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 67.65% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.8% | ||
| Profit Quality | 435.81% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.74 |
F-Score7
WACC7.3%
ROIC/WACC0.98
Cap/Depr(3y)116.63%
Cap/Depr(5y)94.15%
Cap/Sales(3y)6.26%
Cap/Sales(5y)5.54%
Profit Quality(3y)92.83%
Profit Quality(5y)168.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.02%
EPS 3Y14.51%
EPS 5Y6.61%
EPS Q2Q%-8.17%
EPS Next Y3.88%
EPS Next 2Y6.2%
EPS Next 3Y10.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.6%
Revenue growth 3Y17.42%
Revenue growth 5Y7.37%
Sales Q2Q%-7.23%
Revenue Next Year-4.31%
Revenue Next 2Y1.3%
Revenue Next 3Y0.01%
Revenue Next 5YN/A
EBIT growth 1Y0.83%
EBIT growth 3Y16.48%
EBIT growth 5Y7.37%
EBIT Next Year65.27%
EBIT Next 3Y22.2%
EBIT Next 5YN/A
FCF growth 1Y489.26%
FCF growth 3Y1.81%
FCF growth 5Y2.55%
OCF growth 1Y71.08%
OCF growth 3Y11.33%
OCF growth 5Y1.44%
LINAMAR CORP / LNR.CA FAQ
What is the fundamental rating for LNR stock?
ChartMill assigns a fundamental rating of 5 / 10 to LNR.CA.
What is the valuation status of LINAMAR CORP (LNR.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to LINAMAR CORP (LNR.CA). This can be considered as Fairly Valued.
What is the profitability of LNR stock?
LINAMAR CORP (LNR.CA) has a profitability rating of 6 / 10.
What is the valuation of LINAMAR CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LINAMAR CORP (LNR.CA) is 8.11 and the Price/Book (PB) ratio is 0.81.
How sustainable is the dividend of LINAMAR CORP (LNR.CA) stock?
The dividend rating of LINAMAR CORP (LNR.CA) is 4 / 10 and the dividend payout ratio is 30%.